2007 FII inflows cross $10 bn; July alone sees $5.75 bn

Foreign institutional investors’ (FIIs) unabated appetite for the Indian markets has taken their net inflow into the country to over $10 billion so far this year, with an investment of $5.75 billion in July, the highest ever in a month. The FIIs have made a net purchase worth about $10.5 billion in equity and debt markets since the beginning of 2007, dwarfing the total net investment of $8.87 billion in the entire 2006, the data available with the Securities and Exchange Board of India (Sebi), the market regulator, shows.

The net FII inflow in the equity markets totals $9.9 billion this year, while that in the debt markets stands at $681 million. The benchmark stock market index, Sensex, has gained about 9 per cent in the past one month while it has surged over 54 per cent over the past 12 months.

Market observers believe that if the current trend continues, the net FII inflow in equities may cross the record $12.5 billion, which was registered in 2005.